Housing market resilient despite Brexit uncertainty
The political uncertainty of Brexit hasn’t dampened property market for a second month in a row but it’s thought that recent optimism will be affected if our European exit unpredictability continues.
Halifax have found house prices edged ahead again in August, with the property market showing a “degree of resilience” despite the continued confusion surrounding Brexit.
The Halifax report states that average prices rose by 0.3% month-on-month, taking the annual rate of house price inflation to 1.8%. It was the second month of rising prices after four months of which they had been either flat or falling.
According to most sources and their indexes, prices have gone into reverse over the past year in London. The leading cause of falls in the capital’s property market is thought the be down to the political fatigue and ambiguity caused by Brexit.
The Berkeley Group however, in a trading update and more positive slant, said that “pricing has remained stable and … a solid need for new homes.”
Indeed, this is backed up by Halifax with the average price for a new home in the UK rising to £233,541, up by almost £4,000 since time last year.
Halifax managing director Russell Galley said:
“Although the housing market will undoubtedly be influenced by events in the wider economy, it continues to show a degree of resilience for the time being. We should also not lose sight of the fact that the single biggest driver of both prices and activity over the longer-term remains the dearth of available properties to meet demand from buyers.”
One support for buyers is likely to be renewed falls in mortgage interest rates. Dramatic movements – which tumbled to record lows this week are feeding through to lower fixed-rate mortgage deals.
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